Mobile network operators who fail to comply with the regulations of their 3G licences set out by Government media watchdog Ofcom in 2000, are unlikely to have their licence revoked, a new report said yesterday.
The rules set out when the third generation licences were bid for in an auction five years ago stated that 3G providers must provide coverage for 80% of the population by 2007. However, because of the slow take-up of the 3G service, many operators are likely to miss this target.
In a consultation document issued yesterday, Ofcom said “this was a clarification rather than a softening of its line on 3G licensing”.
The news will anger 3G operator, 3 Mobile, who was last month reported to be planning legal action against Ofcom, after rumours that the watchdog would relax or abandon the targets set four years ago (see 3 Mobile Plan To Sue Government).
The development and take-up of 3G services has not been as quick as the Government had previously predicted and a report from Government advisor Quotient Associates earlier this week, stated that a second auction of third generation mobile (3G) telephone licences, scheduled for 2007, will gross only one tenth of the £22.5 billion secured in the first auction, making the Treasury just £2.5 billion (see 3G Licence Prices To Drop By 90%).
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